Partial Revision of VAT Act: Key Changes in Switzerland’s Value Added Tax System

• The Value Added Tax Act in Switzerland is undergoing a partial revision, expected to come into force on January 1, 2025.
• The planned changes will affect various areas, including electronic platforms, travel agency services, subsidies, trading in emission and comparable rights, administrative measures, and the applicability of reduced tax rates and exemptions.
• Electronic platforms will be considered the person making the supply, creating a chain transaction between the seller, platform, and customer.
• Travel agency services will be considered taxable at the provider location, eliminating the need for a distinction based on the type of service.
• Subsidies will be considered non-considerations not subject to VAT but requiring a reduction of input tax deduction.
• Trading in emission and comparable rights will be subject to acquisition VAT, regardless of the supplier’s VAT registration status.
• Taxable persons with a turnover of up to CHF 5,005,000 per year will have the option to settle VAT annually upon request.
• The requirement for foreign companies to designate a domestic fiscal representative may be waived under certain conditions.
• The reduced tax rate will apply to menstrual hygiene products, and certain services will be exempt from VAT.
• Taxpayers should consider the implications of the partial revision and seek support in identifying risks and planning for their company.

Source: primetax.ch

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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